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Question - Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production and sale of 57,800 units of its sole product. Magpie desires a profit equal to a 19% rate of return on invested assets of $620,000.
Fixed factory overhead cost $36,900
Fixed selling and administrative costs 7,400
Variable direct materials cost per unit 4.63
Variable direct labor cost per unit 1.88
Variable factory overhead cost per unit 1.13
Variable selling and administrative cost per unit 4.50
Compute the markup percentage on total cost for the company's product?
a. 26.8%
b. 20.5%
c. 12.6%
d. 15.8%
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